It is pertinent to point out that in order to prepare the insurance sector to face the impact of globalization and shrinking margins and also to avoid mal-administration, the Insurance companies must be run by competent executives with adequate know-how of insurance business. It is likely that if the action is not taken by the Commission in this context, the Insurance Industry may also be caught unprepared like the Textile Sector.
It is therefore the primary responsibility of the Commission to bring in effective legislation so that other companies do not meet the same fate. Keeping in view the importance and urgency to implement the ‘Fit and Proper Test’ on the insurance sector in line with the Insurance Ordinance 2000, the Commission commenced it discussions with the Insurance Association of Pakistan. This was done with the spirit of devising objective criteria by taking the views of the stakeholders. Unfortunately, printing misleading news in the news papers before these discussions have reached their conclusion is viewed by the Commission as highly unprofessional and premature. Politicizing the positive efforts of the Commission to bring the insurance industry on a par with the international best practices will be counter productive for the already struggling insurance industry. This will also disrupt the congenial environment created by the Commission and lead to an atmosphere of mistrust which will not be in the best interest of the insurance industry.
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